1. Dr. Sang Hyon Lee Korea Employment Information Service (KEIS)
Employment Insurance System
of Korea
Dec. 2014
Dr. Sang Hyon Lee
Korea Employment Information Service (KEIS)

2. Job Matching Service Vocational Counseling,
Skill Development, Youth Employment Subsidy, Internship
University Job center, Job Success Package Program
<Provided by Employment Insurance>

3. ○ Objectives and Effects of EI
Maintain standard of living for the unemployed
Social justice for vulnerable groups in the turbulent economy
- Provide time to find new jobs
Assistant unemployed workers find jobs
Stabilize economy during recession, bigger economy by providing
money to spend for the unemployed
- Decrease social costs of unemployment
- Promote better utilization of labor force
- Encourage employers to stabilize employment
Help employers maintain a skilled work force
Give a chance to develop employment services and vocational training delivery system

4. The purpose of employment insurance is to seek
① to prevent unemployment, ② promote employment
and ③ develop and improve the vocational skills of workers,
④ to strengthen the nation’s vocational guidance
and ⑤ job placement capacity and to stabilize the livelihood of workers
and ⑥ promote their job-seeking activities by granting necessary benefits when they are out of work,
thereby contributing to the economic and social development of the nation.
(Employment Insurance Act, Article 1)
III

5. - Four main programs of EI
- Employment Security Program
- Vocational Skill Development Program
- Unemployment Benefits
- Job Matching Services and Career Counseling

6. Employment Insurance
The Employment Insurance (EI) System of Korea was introduced on July 1,
1995 to prevent joblessness, promote employment and improve workers'
vocational skills.
> In 1960s and 1970s : Unemployment Assistance(UA)
> In early 1980s : Unemployment Insurance(UI)
> In early 1990s : Employment Insurance(EI)
+ Employment Insurance Research Commission (EIRC)
+ EI Law passed December 1, 1993
> Several Issues over EI introduction
+ Types of Social Safety Net (SSN) of the Unemployed
+ Unemployment Insurance(UI) or Employment Insurance(EI)
+ Coverage
+ Vocational Skill Development Program and the In-plant Training Levy System
+ UB and the Legal Severance Payment System
+ Administration Body
+ Financing of EI administration

7. Employment Insurance
It is also aimed at securing a stable livelihood and supporting early
employment by paying benefits needed for living in case a worker loses his
or her job.
- The EI is a comprehensive labor market policy and a social
security system including employment security and vocational skills
development programs aimed at preventing unemployment and promoting
employment as well as a traditional unemployment insurance program
providing unemployment benefits.
- Merits of Korean EI
> Combination of Active Labor Market Programs(Employment Security Program, Vocational Skill Development Program) and Unemployment Benefit
> Short period of UB (90~240 days)
> Early Reemployment Allowance
> Assistance for Training the Unemployed
> Suspension of UB on refusal of job placement service,
vocational training order, etc.

8. Employment Insurance Coverage
Since October 1998, all workplaces with one or more employee have been
subject to the Employment Insurance System. Excluded from coverage are
unincorporated businesses with four employees or fewer in the agricultural,
forestry, fishery or hunting industries; construction projects conducted by
individuals whose total construction cost is less than 20 million KRW;
construction projects which are undertaken to construct or renovate on a
large scale a building with a total floor area of 100㎡ or less; and
housekeeping services
In principle, the EI should apply to all workers at businesses covered by the EI.
However, due to difficulties in managing insurance work and/or unique
occupational characteristics, the following people are excluded from EI coverage:
people who are employed or start up their own businesses
after the age of 65 or over (except for employment security and vocational skills
development programs); people whose monthly working hours are less than 60
hours (including those whose weekly working hours are less than 15 hours);
public officials (optional coverage for special and contract public officials); and so
on.
Does not covering Employees in Very Small Enterprises and Informal Sectors
(daily workers, part-time workers, etc.)

9. Employment Insurance Coverage
Business
Insured
Total
Created
Loss
Gender
Aquisition
Male
Female
2004
1,002,638
472,190
310,418
7,481,618
4,957,284
2,524,334
3,734,937
3,334,909
2005
1,148,474
607,766
417,033
7,965,597
5,241,103
2,724,494
4,232,228
3,685,378
2006
1,176,462
689,734
659,593
8,436,408
5,510,717
2,925,691
4,397,632
3,860,139
2007
1,288,138
778,967
652,456
8,941,639
5,773,949
3,167,690
4,609,512
4,025,285
2008
1,424,330
874,199
757,317
9,271,701
5,936,950
3,334,751
4,802,266
4,409,950
2009
1,385,298
826,907
880,930
9,653,678
6,083,853
3,569,825
5,177,050
4,722,915
2010
1,408,061
811,231
807,487
10,131,058
6,310,423
3,820,635
5,601,393
5,112,336
2011
1,508,669
874,443
803,536
10,675,437
6,569,800
4,105,637
5,946,960
5,392,169
2012
1,610,713
957,420
891,161
11,152,354
6,784,700
4,367,654
6,045,986
5,590,642
2013
1,747,928
975,724
872,901
11,571,213
6,971,699
4,599,514
6,075,728
5,616,445
Total Population 50,000,000, No of Employed 25,979,000,
No of Unemployed 912,000

10. Income and Expenditure of Employment Insurance
(thousand USD)
2013
2014
Income
9,541,136
11,291,046
Expenditure
Employment Policy
4,244,996
4,520,566
Skill Development
1,340,463
1,458,823
Employment Equality
866,337
958,608
Disability Employment Promotion
3,000
2,850
Administration
104,342
107,299
Reservation Fund
2,981,998
4,242,900
Expenditure Total
1,1291,046

11. Reservation Fund Employment Insurance
(Million USD)
2008
2009
2010
2011
2012
Reservation
Fund
82,113
62,464
50,174
46,816
53,078
Earnings
rates
2.02%
14.80%
9.36%
1.20%
4.91%

12. Businesses and workers excluded from coverage
Unincorporated businesses with four or fewer ordinarily employed
workers in the agricultural, forestry, fishing or hunting industries
Construction work carried out by those other than housing
constructors, whose total cost is less than 20 million KRW or which is
undertaken to construct a building with a total floor area of 100m2 or
less or renovate a building with a total floor area of 200m2 or less
Domestic service
Those who are employed or starts up their own businesses after the
age of 65 or over (except for employment security and vocational
skills development programs)
Those whose monthly working hours are less than 60 hours (including
those whose weekly working hours are less than 15 hours)
Public officials and those subject to the Private School Teachers
Pension Act (Optional coverage for special public officials)
- Special postal workers

13. EI coverage for the self-employed
- Amendments to the Employment Insurance Act and the Act on the Collection of
Premiums, etc. of Employment Insurance and Industrial Accident Compensation
Insurance, which would allow self-employed people to opt into the unemployment
benefit program, were passed at the National Assembly, and the EI
(unemployment benefits) for self-employed people took effect on January 22,
2012.
Premium rates
EI premium rates are divided into the rate for employment security
and vocational skills development programs and the rate for
unemployment benefits.
In July 2013, the rate for unemployment benefits was raised from
1.10% (0.55%, each from employer and employee) to 1.30% (0.65%
each from employer and employee).

14. preventing unemployment and promoting employment;
Purpose and programs of EI
Purposes of EI
preventing unemployment and promoting employment;
- strengthening development of job skills of the labor force and efficient job placement services; and
- providing financial assistance to displaced workers.
- Five main programs of EI
- Employment Security Program
- Vocational Skill Development Program
- Unemployment Benefits
- Maternity Protection Program

15. Employment Security Programs
The employment security program is in place to guarantee job security
for workers in response to technological advances and the changing
industrial structure while providing reasonable support to employers'
efforts for employment adjustment. Unlike unemployment benefits, this
program is an active labor market policy to cope actively with changing
labor market conditions.
5 sub-programs of Employment Security Programs
- Employment Creation Assistance
Employment Adjustment Assistance
- Regional Employment Stimulation Grants
- Employment Promotion Assistance
- Labor Market Information and Job Placement Service(KEIS)

16. Employer subsidies ’12 ’13 Plan ’14 Plan
Employment Security Programs
(thousand USD)
Employer subsidies 
’12
’13 Plan
’14 Plan
•Employment Adjustment Subsidy
33,643
53,243
49,998
•Employment Stimulation Subsidy
47,892
39,057
30,487
•Employment Creation subsidy
22,091
47,662
113,203
• Employment Security Subsidy
15,024
11,414
1,000
• Construction worker subsidy
17,033
21,885
14,283
• SME Youth Internship
63,082
87,385
108,441
• Occupational Information
5,805
6,024
5,941
• Labor market information
2,867
3,566
2,962
• Employment Projection
1,286
1,566
• Employment Systems
27,589
37,957
30,379

17. Employment Adjustment Assistance
The Employment Adjustment Assistance program is intended to minimize unemployment by subsidizing employers who make efforts to maintain employment in spite of temporary managerial difficulties
Employment sustain
Temporary shutdown subsidy
Subsidy level
2/3(priority )or 1/2 of wage
Lower than 50% of wage
Limit
No limitation
Committee decide
Upper limit of subsidy
40,000 won/day
Duration
180 days per year
Reasoning for Adjustment 
Criterion Time
1 month before
Stock of production
Increased more than 50%
Production
Decreased more than 15%
Decreased more than 30%
Sales
Trend of sales and production and sales
Keep declining
(more than 20%)
Local market condition
Decided by PES officer
Pre requirement
Non
(Shut down) Approved by labor committee
(Vacation) More than 3 months of shutdown

18. Employment Creation Assistance
The program subsidizes employers who have increased the number of employees by reducing working hours, reforming shift system, improving working conditions, hiring highly skilled workers.
(thousand USD)
2012
2013 Plan
2014 Plan
Plan
Addition
 ❑Total
22,091
47,662
113,203
 • Work together Subsidy
2,789
12,888
78,316
 • Venture Subsidy
1,523
3,030
3,650
 • Hiring professional
2,975
7,387
3,823
 • Employment environment Improvement
12,756
22,685
25,788
 • others
2,228
1,672
1,626

19. Unemployment benefits
- Unemployment benefits are paid for a given period of time to promote the reemployment of the unemployed by stabilizing their livelihoods and that of their families and systematically providing
them with information on job vacancies. Unemployment benefits is mainly composed of job-seeking benefits, extended benefits and employment promotion allowances.
Job-seeking benefits
To be eligible for job-seeking benefits, workers should be insured for at least 180 days during the 18 months prior to getting out of employment at a covered business. The benefit duration varies from
90 to 240 days depending on the contribution period and age at the time of job loss.

20. • 50% of the previous average wage
- max/day : 40,000 KRW
- min/day : 90 % of the hourly minimum wage
• Benefit duration
less than
1 yr
1~less
than 3 yrs
3~less
than 5 yrs
5~less
than 10
yrs
10 yrs or
more
younger than 30 90
120
150
180
30~younger than 50
210
50 or older or the
disabled
240

21. Job-seeking Allowance
(thousand USD)
Applied
EI Benefit
Total
JSA
ERB
Sick Leave
Qualified No
Payment
2004
471,542
467,730
707,432
1,448,306
619,420
1,327,384
81,419
114,859
6,340
6,025
2005
565,753
562,524
812,768
1,751,974
706,645
1,602,875
99,925
143,209
5,801
5,839
2006
612,667
609,691
943,542
2,074,004
816,692
1,834,039
121,232
234,116
5,179
5,785
2007
687,765
685,024
1,009,180
2,434,032
855,749
2,117,168
147,688
310,475
5,307
6,326
2008
838,783
835,140
1,162,534
2,865,256
981,985
2,466,521
174,403
391,613
5,436
6,867
2009
1,073,989
1,068,389
1,528,407
4,116,404
1,299,567
3,589,872
221,389
517,083
6,585
8,921
2010
978,575
973,026
1,336,439
3,686,530
1,236,985
3,477,987
91,864
198,663
6,864
9,386
2011
906,422
902,362
1,278,106
3,561,353
1,163,732
3,337,080
107,472
214,555
6,353
9,296
2012
901,588
898,054
1,267,427
3,676,666
1,146,106
3,431,424
114,006
234,374
6,816
10,429
2013
922,401
919,118
1,290,686
3,883,507
1,162,387
3,611,415
120,486
259,631
7,349
11,991

22. Eligibility requirements
• The person should be insured for at least 180 days during the 18 months prior to unemployment at an EI-covered workplace;
• The person has failed to gain employment although he/she is willing
and able to work; and
※ voluntary unemployment and dismissal due to one's serious faults
are excluded.
• The person is actively seeking reemployment.
(thousand USD)
2010
2011
2012
No. of
beneficiaries
Amount
paid
Job-seeking
benefit
1,213,059
3,487,576
1,142,420
3,346,591
1,127,455
3,442,031
• Extended benefits
• Employment promotion allowances

23. Job-seeking Allowance
(thousand USD)
2010
2011
2012 No
Amount
Training Extended
Benefit 40
118 23 77 19 70
Individual Extended Benefit
4,615
6,816
2,671
4,066
1,575
2,496

24. Nation Wide Job Searching Allowance
Job-seeking Allowance
(thousand USD)
2011
2012 No
Amount
Early Reemployment
Allowance
107,471
214,555
114,006
234,374
Skill Development 14 4 12 5
Nation Wide Job Searching Allowance 23 1 9
0.4
Moving Allowance
226
203
212
255

25. Maternity protection program
When a female worker gives birth, her employer should grant her maternity leave of 90 days (Even in the case of miscarriage or stillbirth, miscarriage or stillbirth leave of up to 90 days (depending on her pregnancy period) should be granted.).
The amount of maternity leave (miscarriage or stillbirth leave) benefit should be equivalent to the ordinary wage under LSA on the start date of the leave, but if the ordinary wage of the worker concerned is larger than 1.35 million KRW, the worker shall be given 1.35 million KRW in maternity leave benefits.
(thousand USD)
2010
2011
2012
No. of
beneficiaries
Amount
paid
Job-seeking
benefit
41,732
178,121
58,137
276,261
64,069
357,798
• Childcare leave benefits
• Benefits for reduced working hours for childcare

26. Maternity Leave Benefit
(thousand USD) No
Amount
2003
32,133
33,522
2004
38,541
41,610
2005
41,104
46,041
2006
48,972
90,886
2007
58,368
132,412
2008
68,526
166,631
2009
70,560
178,477
2010
75,742
192,564
2011
90,290
232,915
2012
93,394
241,900

27. Parental Leave Benefit
Number
Amount
(1000 USD)
Benefit/M
Total
Female
Male
2003
6,816
6,712
104
10,576
300 USD
2004
9,303
9,122
181
20,803
400 USD
2005
10,700
10,492
208
28,242
2006
13,670
13,440
230
34,521
2007
21,185
20,875
310
60,989
500 USD
2008
29,145
28,790
355
98,431
2009
35,400
34,898
502
139,724
2010
41,732
40,913
819
178,121
2011
58,134
56,732
1,402
276,261
40% wage
2012
64,069
62,279
1,790
357,798

28. Skill development
1995 The Introduction of the Employment Insurance System
Vocational Skills Development Project
1998 Training for the unemployed after financial crisis
In 2004, the government established the Workers Vocational Skills Development
Act, thereby setting up the framework for life-long skills development covering
every stage of workers' lives.
In addition, the government set up 'the initiative to build a market-friendly
vocational skills development system' in May 2009, thereby creating a demand-
oriented vocational skills development system. Introduction of Individual Training
Account System
In the following years, policy resources were directed towards vocational skills
development linked to workplaces and, consequently, human resources
development was reinforced in new growth engine sectors.
In 2012, the government devised 'the 2nd basic plan for vocational skills
development' which consisted of a variety of specific policy actions to materialize
the vision of 'the skill-valued society for co-existence and shared growth

29. Skill development Vocational skills development program Training for
the employed
(upgrade training)
Training for the
unemployed
(initial training)
Training for
national key
& strategic
industries
Vocational
training for job
seekers
Local
Governments
Vocational training
for the unemployed
in farming & fishing
communities
Public vocational training
(Polytechnic colleges/KUTE)
(training for industrial workforce)
Employer
Subsidy
Training
Employee
Subsidy
Training
Employer subsidy Training
SME Target subsidy
- National Consortium Training
- SME Core competency
- Learning organization
- Systemic OJT
Individual Training Account
Study and training loan

30. Types and target groups of vocational skills development training
Category
Type
Target Group
Training for the employed
•. Subsidy for employer-fund skills development
•. Subsidy for employee job skills upgrading
•. Loans for workers' school and training expenses
All workers
Vocational training for
SMEs
•. Support for Consortium for HRD Ability Magnified Program
(CHAMP)
•. Support for learning organizations at SMEs
•. Support for upgrading core job skills for SMEs
SME workers
Training for the
unemployed
and non-regular workers
•. Training under the Individual Training Account System
•. Loans for living costs during vocational training
Job seekers
Employment promotion
training
•. Vocational training for the unemployed in local areas
Farmers and fishermen, low-income individuals, etc.
Training to foster
workforce
•. Training to foster craftsmen
•. Training for national key/ strategic industries
Unemployed people, young people who do not go to higher education, etc.

31. - Budget for skill development in 2014 is 1.4 billion USD
’12
’13 Plan
’14 Plan
Total
1,079,823
1,340,463
1,458,823
 • Employer subsidy
325,459
348,914
399,554
 • Employee and unemployed
217,236
277,930
285,719
 • National key &strategic industries
167,735
200,748
211,487
 • SME skill development subsidy
109,800
201,878
239,670
 • other subsidy
4,932
8,014
8,184
 • HRD Korea
33,004
63,691
129,781
 • Polytech University
102,600
106,388
113,748
 • Korea Tech University
30,653
33,769
33,537
 • Study and training loan
87,973
96,550
35,643
 • Self-employed subsidy
431
2,581
1,500
- Social blame for Training Queen

32. - Support for training of prospective and incumbent employees
Employer subsidy
2009
2010
2011
2012
Total
50.7
41.9
31.3
31.0
Less than 300
27.2
25.3
21.1
18.8
More than 300
115.1
87.0
59.5
62.0
GAP(B-A)
87.9
61.7
38.4
43.2
- Support for training of prospective and incumbent employees
The government supports 'initial training' for prospective employees
and 'upgrade training', 'training on paid leave' and 'job skills upgrade
training' for incumbent employees. Large corporations take 62% of
training subsidy
- Irregular workers are 32.3% of total workers, however, participation
of employer subsidy training is 1-2% 08 09 10 11 12
Total (a)
3,663
4,516
3,775 
3,015 
 3,190
Irregular (b) 38
60 
77 
54 
44 
Portion (b/a)
1.0
1.3
2.0
1.7

33. - Need to develop proper policies to support for the participation
2009
2010
2011
2012
Irregular workers
Participants
136,521
209,647
137,235
84,508
- Need to develop proper policies to support for the participation
of training program of irregular workers
- Contracting out training programs
Type
Public training providers
Public organizations(35)
Polytech(34), KUT(1)
Local government(5)
Government agencies(36)
Ministry of Justice(36)
Private training providers (7,014)
Training corporations(55)
Private training institute(2,655)
Providers designated by MOEL(874)
Others(3,430)

34. Individual training account (My Work Learning Card) system
Allows job seekers to freely choose vocational training courses and training institutions within a certain subsidy limit and manages individuals' training histories in an integrated manner.
The learning card (individual training account) is issued to those found to lack vocational skills after counseling at a Job Center. It is valid for one year from the date of issuance and offers a per person subsidy of up to 2 million KRW.
People receiving training under the system are mandatorily required to pay 25-45% of their training expenses on their own. However, people from low-income families, who participate in the 'employment success package' program, are exempt from the out-of pocket payment and subsidized up to 3 million KRW.
In 2012, some improvements were made to the ITA system to adopt a stricter selection process and strengthen trainees' responsibility: the work search obligation should be satisfied before a training account is issued; the pre-counseling on training is given before trainee selection; unfaithful trainees, including those who give up training from the beginning or drop out of training, are denied training subsidies and are disadvantaged when applying to participate in training next time.
As a consequence, the number of people issued with a training account sharply fell from 237,827 in 2011 to 189,525 in 2012 while the training participation rate of account holders sharply grew from 74.8% in 2011 to 86.2% in 2012.

35. Development and utilization of National Competency Standards
It has been suggested that there should be a new HRD infrastructure which systematizes the knowledge and skills required in industrial sites and applies them to jobs, training/education, and qualifications to develop and foster the human resources needed by the labor market.
To meed this need, the Economic and Social Development Commission discussed 'measures to improve the vocational skills development training system' in July 2001, and the Ministry of Employment and Labor started to develop and apply National Competency Standards (NCS) in 2001.
'National Competency Standards' refers to competency units, such as the knowledge and skills workers need to perform their jobs in industrial sites, which are standardized at the national level.
NCS for 286 occupational areas were developed between 2002 and 2012 and are used as basic materials to link 'jobs, training and qualifications' together at the industry level.

36. Occupational standards
Competency standards
Competency standards define the competencies required for effective performance in the workplace.
Standards are expressed in outcome terms
Source : ANTA(2003). Training Package Assessment Materials Kit
Competency standards
Competency standards define the specification of competencies required for effective performance in the workplace expressed in a consistent format
Source : ILO(2006). Guidelines for Development of Regional Model Competency Standards(RMCS)
Occupational standards
Occupational standards outline the knowledge and performance required of an individual to be considered competent in an occupation.
Source : The Canadian Tourism Human Resource Council(2004). National Occupational Standards

37. Characteristic of Skill Development of Korea
- Government’s strong leadership
- Division of the role of the Government and the Private Sector
- Policy implementation suitable for environmental changes
- The stable financing system
- The linkage among labor market policies such as the active labor market policy
The connection with the NCS
Complement between Vocational Education and Vocational Training
Over specification and over education
Introduction of dual systems
Meister school 37

38. Types of Recruitment Service
Employment services for small businesses
In an effort to provide support for small businesses suffering labor shortages, the government mapped out the "the measures to solve mismatch between labor supply and demand that SMEs suffer"(reported in the Cabinet meeting, 2nd, October) and 71 job centers nationwide operated special employment promotion period(for one month, November) in order to create quality jobs and provide intensive employment support services.
Types of Recruitment Service                           
Job
Posting
Resume
Collection
Screening
Interview
Final
Recruit-
ment A B C D

39. Permanent Contractors
Staffs of PES( ‘12)
Total
Government Officers
Permanent Contractors
Contractors
Sub
Officers
Counselors
Statisticians
4,916
3,068
1,823
1,189 56
537
339
198
1,311
* EI management approximately 1,000 vocational counselors are required

40. Efficiency of Korean PES
Officers
No of Job Placements
Well Developed
Job Matching
Website
Makes PES
Efficient
Korea
Goyong Center
5,000
1.5 Million
2.5 Million
Japan
Hellowork
28,000
1.9 Million
2.5 Million
France
Pole Emploi
56,000
Germany
Bundesagentur fur Arbeit
110,000
* Goyong means employment

41. 1. Lessons from Korean EI
One-stop service center is effective in job matching and activating people. Onestop service from the start : Combination of Active Labor Market Programs(Employment Security Program, Vocational Skill Development Program) and Unemployment Benefit
Individualized CASE Management employment and welfare services are useful.
Development of employment information service and integration of on/off-line service institutions are essential. Exceptional IT systems required (Universial Credit, Ohbama Care)
Central-central, central-local, public-private partnership is important.
Profiling of job-seekers are necessary for focusing more vulnerable groups.

42. 2. Lessons from Korean EI
Needs more public employment service capacity(activation)
Workfirst policy(5,000 > 20,000), Employment is the responsibility of
the society
- Budget balance more budget for the employment
service>training>employer subsidies
Use employment security programs only for the crisis
(PLMP, Deadweight loss, substitute effect, Fraud)
More involvement of trade unions in the decision making
More partnership and contracting out

43. WAPES
WAPES (the World Association of Public Employment Services) is a global association of Public Employment Services.
100 Public Employment Services are members
Workshops on various PES subjects
Dynamic of Innovation and Idea Management in PES
PES and fight against poverty
Models of PES: Centralized and Decentralized
Youth & Social Entrepreneurship: the role of PES
Training Programs
Bilateral Cooperation
Thailand, Japan, Korea, Mongol, Viet Nam, Cambodia, Parkistan, Australia, China, Philippines

44. Thank you